New Zealand Surprises With Larger Rate Cut as Economic Concerns Mount

New Zealand’s central bank cut interest rates more aggressively than most forecasters expected and said it’s open to further reductions, underscoring mounting concerns about the economy in a move that sent the local currency to a six-month low.

The Reserve Bank’s Monetary Policy Committee reduced the Official Cash Rate by 50 basis points to 2.5% from 3% Wednesday in Wellington, a decision expected by just 10 of 25 economists in a Bloomberg survey. Fifteen predicted a 25-point reduction.